Fair Value (Tables)

9 Months Ended

Sep. 30, 2022

Fair Value

Schedule of assets carried at fair value on a recurring basis

The following tables detail the assets that are carried at fair value on a recurring basis as of the periods shown and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:

			Quoted Prices in
			Active Markets		Significant		Significant
			for Identical		Observable		Unobservable
	Balance		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)
	September 30, 2022
Assets:
U.S. Treasury securities	$	37,640	$	37,640	$	—	$	—
U.S. government agency mortgage-backed securities-residential		150,122		—		150,122		—
U.S. government agency securities		22,257		—		22,257		—
Municipal securities		4,717		—		4,587		130
Corporate Bonds		13,449		—		13,449		—
Other		845		—		845		—
Total available for sale securities		229,030		37,640		191,260		130
Loan level interest rate swaps		4,840		—		4,840		—
Total assets	$	233,870	$	37,640	$	196,100	$	130
Liabilities:
Loan level interest rate swaps	$	4,840	$	—	$	4,840	$	—
Total liabilities	$	4,840	$	—	$	4,840	$	—

	December 31, 2021
Assets:
U.S. Treasury securities	$	59,825	$	59,825	$	—	$	—
U.S. government agency mortgage-backed securities – residential		176,491		—		176,491		—
U.S. government agency securities		24,722		—		24,722		—
Municipal securities		6,851		—		6,706		145
Corporate Bonds		11,752		—		11,752		—
Other		642		—		642		—
Total available for sale securities		280,283		59,825		220,313		145
Loan level interest rate swaps		644		—		644		—
Total assets	$	280,927	$	59,825	$	220,957	$	145
Liabilities:
Loan level interest rate swaps	$	644	$	—	$	644	$	—
Total liabilities	$	644	$	—	$	644	$	—

Schedule of assets carried at fair value and measured at fair value on a nonrecurring basis

The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of September 30, 2022 and December 31, 2021 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value:

			Quoted Prices in
			Active Markets		Significant		Significant
			for Identical		Observable		Unobservable
	Balance		Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)
	September 30, 2022
Impaired loans, with specific reserves	$	186	$	—	$	—	$	186
Total	$	186	$	—	$	—	$	186

	December 31, 2021
Impaired loans, with specific reserves	$	321	$	—	$	—	$	321
Total	$	321	$	—	$	—	$	321

Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value:

	Quantitative Information About Level 3 Fair Value Measurements
	Fair Value		Valuation		Unobservable		Range
	Estimate		Techniques		Input		(Weighted Average)
	September 30, 2022
Impaired loans	$	186	Appraisal of collateral	(1)	Liquidation expenses	(3)	0% to 6%
					Appraisal adjustments	(2)	0% to 20%
	December 31, 2021
Impaired loans	$	321	Appraisal of collateral	(1)	Liquidation expenses	(3)	0% to 6%
					Appraisal adjustments	(2)	0% to 20%

(1) Fair value is generally through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable.

(2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraised value.

(3) Estimated costs to sell.

Schedule of carrying value and fair values of the financial instruments

As of the following dates, the carrying value and fair values of the Company’s financial instruments were:

	September 30,				December 31,
	2022				2021
	Carrying Value		Fair Value		Carrying Value		Fair Value
Financial Assets:
Cash and due from banks (Level 1)	$	28,110	$	28,110	$	72,091	$	72,091
Available for sale securities (Level 1)		37,640		37,640		59,825		59,825
Available for sale securities (Level 2)		191,260		191,260		220,313		220,313
Available for sale securities (Level 3)		130		130		145		145
Loan level interest rate swaps (Level 2)		4,840		4,840		644		644
FHLB stock (Level 2)		2,350		2,350		1,322		1,322
Loans, net (Level 3)		951,282		923,561		854,967		855,542
Mortgage servicing rights (Level 3)		2,531		5,613		2,633		4,892
Financial Liabilities:
Deposits (Level 2)		1,110,192		1,000,530		1,101,999		1,083,541
Mortgagors' escrow accounts (Level 2)		5,895		5,896		9,130		9,137
FHLB advances (Level 2)		37,541		37,547		18,041		18,151
Subordinated debt (Level 2)		5,155		5,155		5,155		5,155
Loan level interest rate swaps (Level 2)		4,840		4,840		644		644